The growing population and shifting consumer preferences in India are driving the need for an evolution of food systems that prioritize health, nutrition, and sustainability.
In a whitepaper titled “Nourishing India Sustainably: Ecosystem Actions for Food Systems Transformation,” released by The Boston Consulting Group (BCG) and the Federation of Indian Chambers of Commerce and Industry (FICCI) at the 15th edition of FICCI Foodworld India, key megatrends impacting food production and consumption were explored. The report emphasizes the imperative of transforming current food systems, addressing challenges across the value chain, and presenting necessary ecosystem-level actions to drive meaningful change.
India’s economic growth is boosting incomes and shifting consumption patterns towards fruits, vegetables, packaged foods, and healthier options. However, rising incidents of climate change and geopolitical shifts are impacting food systems and affecting the global food supply chain.
Hemant Malik, Chair of the FICCI Food Processing Committee and Executive Director of ITC Ltd., highlighted the evolving consumption patterns. “With an increase in per capita income, the consumption pattern will evolve, shifting staples to more value-added and innovative products,” Malik said. This underscores the need for the food industry to adapt and innovate in response to changing consumer preferences and economic dynamics.
Abheek Singhi, Chair of Practices at Boston Consulting Group, pointed out the emerging megatrends in the Indian food market. “Many of the current megatrends are paradoxical, such as the increasing focus on both health and indulgence simultaneously, and globalization and localization present both opportunities and challenges. Success requires long-term strategic thinking and flexibility,” he said.
The report outlines five key imperatives across the food value chain, from agricultural production to processing and end consumption, to ensure food and nutrition security:
- Increasing Agricultural Productivity: With limited agricultural land, boosting productivity is crucial for food security.
- Crop Diversification: Meeting changing preferences and achieving self-reliance through crop diversification is essential.
- Sustainable Agricultural Practices: Adopting sustainable practices is vital for securing higher yields and building climate resilience.
- Reducing Food Losses and Waste: Ensuring more food reaches consumers by reducing losses and waste throughout the supply chain.
- Balancing Nutrition, Taste, and Affordability: Innovation is necessary to achieve this balance.
Producers face significant challenges, including the complexity of balancing health, taste, and price, a lack of support for transitioning, inadequate last-mile infrastructure, and limited economic viability. Sushma Vasudevan, Managing Director and Partner at Boston Consulting Group, emphasized the critical need for collaborative innovation. “The big challenge is ensuring the trifecta of health, taste, and price is met. This requires innovation, which is impossible for a single player to target and will require an ecosystem (private and public) to come together to address and resolve,” Vasudevan said.
As India’s food industry navigates these challenges, collaboration between the private and public sectors, along with strategic innovation, will be crucial in transforming the food systems to meet the evolving needs of consumers.